László Bige: Nitrogénművek Zrt. outperforms expectations

Bige László_468This year has been exceptionally good for the Bige group. Nitrogénművek Zrt. is on course to finish one of its most successful year, the owner of the company commented in an interview in Vidék Magazine.

László Bige said that they have not laid off any employees due to the pandemic. On the contrary, the company has expanded its team with new professionals engineers, legal managers, and economic and commercial executives. Despite COVID-19, the company was able to increase production and expand its distribution channels.  Nitrogénművek Zrt. has strengthened its position in its major export countries and also acquired major stakes in new markets. The company sells and distributes fifty percent of its production to 13 European countries – consequently half of its sales come from exports. Domestically, Nitrogénművek Zrt. has about 10,000 clients. This broad-spectrum of geographic diversification eliminates dependence on any particular market while its large and extremely diverse client base diminishes any dependence from a single buyer.

László Bige said, the market for nitrogen-based fertilizers remained stable across Europe throughout the year, while the price of input materials decreased. By now, the nearly 420 million-euro investment series that Nitrogénművek had carried out to create a state-of-the-art facility between 2004 and 2017 have passed the test of time. In Hungary, without any state support, no one has ever made such an investment in the private sector. That is why the factory at Pétfürdő, which is capable of producing 1.45 million tons of nitrogen-based fertilizers a year, is working steadily on world-class level in terms of technology and the quality of its products. The investment was also necessary to ensure that Hungarian farmers always have access to high-quality, domestically produced fertilizer. Mr. Bige has emphasised the fact that there is no modern, efficient and effective agricultural production without nitrogen-based soil supporting.

 The owner of Nitrogénművek Zrt. brought to attention the fact that the increased cost-effectiveness by the investments in the Pétfürdő factory is now indisputably reflected in its results. Nitrogénművek Zrt. is in the league with the best financial results in terms of plant-level figures in Europe. In the first half of the year, Nitrogénművek already sold more than 620 thousand tons of goods, with sales revenue of HUF 54 billion, coupled with HUF 15.5 billion EBITDA, respectively. A massive, almost 70% YoY increasein its EBITDA figures. After an outstanding first half, the pace was maintained in the second half of the year as well. The factory can produce on maximum capacity at 24/7, 365 days a year.  Contracted arrears for the production of Nitrogenművek Zrt. has surpassed the total production capacity for Q1, 2021. In financial terms, 2020 will be among the company’s most successful years, Mr Bige added.

The interview can be read at the following link: